EVgo, one of the leading providers of public electric vehicle (EV) fast charging infrastructure in the United States, has successfully closed a $1.25 billion loan guarantee facility from the U.S. Department of Energy (DOE) Loan Programs Office (LPO). The loan, issued under the DOE’s Title 17 Clean Energy Financing Program, will support the construction of 7,500 new fast charging stalls across the nation. This expansion will significantly grow EVgo’s network, bringing its total number of owned and operated charging stations to at least 10,000 by 2029.
Badar Khan, CEO of EVgo, expressed the company’s confidence in its position as a leader in the fast charging sector, saying, “As one of the nation’s leading public fast charging providers, we are well-positioned to deploy the infrastructure needed to support both current and future domestic investments in transportation electrification. This public-private partnership will help us continue to scale our operations to serve the influx of vehicle options that will be available to American consumers in the coming years.” EVgo’s efforts aim to address the growing demand for electric vehicle infrastructure, which is essential as the automotive industry prepares to introduce over 30 new affordable EV models by the end of 2025, in addition to more than 70 models already available to U.S. consumers.
The expansion of EVgo’s charging network is part of a larger strategy to promote EV adoption across the country by improving range confidence among drivers. As more consumers turn to electric vehicles, the availability of reliable public charging infrastructure will be key to boosting confidence in these eco-friendly alternatives. EVgo’s investment in high-speed charging stations is expected to generate over 1,000 jobs across the U.S., with more than 700 of those roles in construction, engineering, development, and operations.
Key Terms of the $1.25 Billion Guaranteed Loan Facility
The loan facility, which totals $1.25 billion, consists of a principal amount of $1.05 billion and capitalized interest of up to $193 million. The fixed interest rate will be based on the long-dated U.S. Treasury rate with an additional risk-based charge and liquidity margin of approximately 1.2%. As collateral, EVgo has contributed 1,594 existing charging stalls from its public network to the project. The loan is structured as limited recourse project financing, meaning that the loan is secured by project assets rather than by EVgo’s general assets.
The loan will be repaid over a 17-year period, with a grace period on both principal and interest during the project’s deployment phase. During this five-year deployment period, which begins in 2025, EVgo plans to install the additional 7,500 fast charging stalls at a rate that ramps up annually. The first drawdown of approximately $75 million is expected to occur in January 2025, subject to satisfying all conditions precedent. This follows the receipt of a conditional commitment for the loan on October 3, 2024, and marks the completion of a rigorous 18-month process.
Job Creation and Local Economic Impact
EVgo’s commitment to expanding its charging infrastructure has the potential to significantly impact local economies. In addition to creating direct jobs in construction and operations, the company’s growth will also stimulate job creation in related sectors, such as manufacturing and retail. Moreover, the increased availability of EV fast charging stations will provide essential support to the growing number of electric vehicles on the road, further accelerating the adoption of sustainable transportation solutions.
Innovation in Charging Solutions
In addition to infrastructure expansion, EVgo is fostering innovation in the EV sector through its EVgo Innovation Lab. This initiative is focused on advancing the overall transportation electrification ecosystem by conducting extensive interoperability testing and partnering with automakers and technology companies to enhance the customer experience. EVgo is also working on the development of next-generation charging architecture, leveraging the knowledge gained from serving over a million customers nationwide. The company plans to deploy this new charging infrastructure in the second half of 2026, providing it with greater control over the charging experience while promoting energy efficiency and reducing costs.
Conference Call and Additional Information
EVgo will hold a live webcast and conference call to discuss the DOE loan facility and its implications for the company. The event is scheduled for today at 5 p.m. ET / 2 p.m. PT and will be accessible via the EVgo investor relations website. Investors and analysts will be able to ask questions and receive further details about the loan facility and EVgo’s strategic plans.
For more information about EVgo’s charging network and upcoming developments, visit www.evgo.com.
Transaction Advisors
Goldman Sachs served as the financial advisor to EVgo for this transaction.
